Ann: Second Binding Offtake Agreement Signed for Ancuabe, page-7

There are NO OFFTAKES in natural graphite....ALL graphite has to be qualified and no company in the world will risk significant resources, consumer confidence, or product liability on a flake graphite product that has not be tested or commercially produced.

Former industrial bulk minerals continue to apply non standard terminology for bulk industrial minerals (i.e. iron, magnesium, cobalt, or lithium) to the graphite industry where it does not apply.

If you read the fine print, the agreement is NOT take or pay, there has to be a production plant built to produce commercial grade concentrate to be qualified for further consideration.

There are other exclusions such as market price, commercial available other graphite sources, and the ability to cancel the agreement without financial liability which is standard for these types of commercial non take or pay agreements.

I will yield to anyone who can produce a true offtake agreement in natural flake graphite where the customer has invested millions into a non-producing graphite project (cash up front in a true offtake), and has agreed to pay a financial penalty to a non-producing graphite operation should it fail to come to fruition.